Maalouf v. Islamic Republic of Iran

District Court, District of Columbia·Decided January 22, 2021·No. Civil Action No. 2016-0280·Published

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

HENRI MAALOUF, et al.,

Plaintiffs,

v. Civil Action No. 16-0280 (JDB)

ISLAMIC REPUBLIC OF IRAN, et al.,

Defendants.

MEMORANDUM OPINION

This case arises out of the death of Edward Maalouf, a U.S. government employee who was tragically killed in the 1984 terrorist bombing of the U.S. Embassy in Beirut, Lebanon. Edward’s estate, widow, three sisters, and son participated in an earlier lawsuit against the Islamic Republic of Iran (“Iran”) and the Iranian Ministry of Intelligence and Security (“MOIS”) and were awarded both compensatory and punitive damages as a result. See Doe v. Islamic Republic of Iran, 808 F. Supp. 2d 1 (D.D.C. 2011); Estate of Doe v. Islamic Republic of Iran, 943 F. Supp. 2d 180 (D.D.C. 2013). When Edward’s oldest brother, Henri Maalouf, learned of the Doe judgment years later, he filed the instant action on behalf of himself and the estates of his parents and his younger brother Gaby (collectively “plaintiffs”) against Iran and MOIS. See Compl. [ECF No. 1]; Am. Compl. (July 21, 2016) (“First Am. Compl.”) [ECF No. 13]. Plaintiffs then chose to litigate their action against Iran only, who—as in other similar lawsuits—never appeared in this Court.1 This Court previously considered plaintiffs’ motion for a default judgment against Iran in

1 Plaintiffs served their complaint and their first amended complaint on Iran only. See U.S. State Dep’t Letter (June 28, 2016) [ECF No. 11] (confirming service of plaintiffs’ complaint on the Islamic Republic of Iran); U.S. State Dep’t Letter (Aug. 30, 2017) [ECF No. 28] (confirming service of plaintiffs’ first amended complaint on the Islamic Republic of Iran). Likewise, plaintiffs presently move for a default judgment against Iran only. See Pls.’ Mot. for Default J. (“Pls.’ Mot.”) [ECF No. 31] at 1 (seeking a “default judgment against Defendant the Islamic Republic of Iran” without mention of MOIS).

February 2020, concluding that although “plaintiffs ha[d] stated valid causes of action [against Iran] under state and/or foreign law,” plaintiffs had not “specif[ied] in their complaint or otherwise a particular cause of action arising out of a specific source of law,” as binding D.C. Circuit case law requires. Maalouf v. Islamic Republic of Iran, Civ. A. No. 16-0280 (JDB), 2020 WL 805726, at * 1, *7 (D.D.C. Feb. 18, 2020) (internal quotation marks and citation omitted); see also Acree v. Republic of Iraq, 370 F.3d 41, 59 (D.C. Cir. 2004), abrogated on other grounds by Republic of Iraq v. Beaty, 556 U.S. 848 (2009) (“A plaintiff proceeding under the FSIA must identify a particular cause of action arising out of a specific source of law.”). Now that plaintiffs have amended their complaint to plead specific causes of action under D.C. law, see Am. Compl. (June 16, 2020) (“Fourth Am. Compl.”) [ECF No. 58] ¶¶ 42, 46, this Court concludes, for the reasons explained below, that plaintiffs are entitled to a $15 million judgment against Iran.

Background

The Court assumes familiarity with its prior decision, which sets forth the factual and procedural background of this case in greater detail. See Maalouf, 2020 WL 805726, at *1–2. Hence, only a brief description of the key facts follows.

On January 19, 1984, President Reagan “designated Iran a state sponsor of terrorism” in response to its role in sponsoring several terrorist attacks in Lebanon, including the 1983 bombing of the U.S. embassy in Beirut. Dammarrell v. Islamic Republic of Iran, 281 F. Supp. 2d 105, 113 (D.D.C. 2003). Months later, a second bomb exploded at the U.S. embassy annex in East Beruit, killing at least eleven people and injuring over fifty. Doe, 808 F. Supp. 2d at 7. Edward Maalouf, a twenty-six-year-old security guard at the U.S. embassy, was among those who died in that attack. Fourth Am. Compl. ¶¶ 23, 31; Decl. of Pl. Henri Maalouf (“Henri Maalouf Decl.”) [ECF No. 31- 1] ¶ 1.

In a series of prior cases brought by victims and their families under the “terrorism exception” in the Foreign Sovereign Immunities Act (“FSIA”), 28 U.S.C. §§ 1602–11, this Court has held Iran liable for compensatory and punitive damages arising out of the Beirut embassy bombings under different sources of federal and state law. See, e.g., Doe, 808 F. Supp. 2d at 21– 23; Salazar v. Islamic Republic of Iran, 370 F. Supp. 2d 105, 113–15 (D.D.C. 2005). The instant suit is nearly identical to the Doe case but involves a different set of plaintiffs. Edward’s estate, as well as his widow, three sisters, and son, all participated in the Doe litigation and received compensatory and punitive damage awards under D.C. law as part of the Court’s final judgment in May 2013. See Estate of Doe, 943 F. Supp. 2d at 183–84; Henri Maalouf Decl. ¶ 7. Edward’s brother Henri, however, only learned of the Doe suit years later, at which time he sought, on behalf of himself and the estates of his brother Gaby and his parents, Elias and Olga, to bring the instant action. See Henri Maalouf Decl. ¶¶ 52–53. Elias, Olga, and Gaby each survived Edward, but passed away in 1986, 2000, and 2009, respectively. Id. ¶¶ 2–5. Henri presently resides in London. Id. ¶ 5.

Plaintiffs effected service of their first amended complaint on Iran on August 9, 2017 in accordance with 28 U.S.C. § 1608(a)(4). See U.S. State Dep’t Letter (Aug. 30, 2017). The Clerk of Court declared Iran in default on October 16, 2017. See Default [ECF No. 30]. This Court set aside that default in March 2018 and dismissed plaintiffs’ action as untimely. Maalouf v. Islamic Republic of Iran, 306 F. Supp. 3d 203, 213 (D.D.C. 2018). The D.C. Circuit, however, reversed that dismissal, holding that a district court “lacks authority to sua sponte raise a forfeited statute of limitations defense in a FSIA terrorism case, at least where the defendant sovereign fails to appear.” Maalouf v. Islamic Republic of Iran, 923 F.3d 1095, 1101 (D.C. Cir. 2019).

The Court then appointed a special master to make recommendations regarding plaintiffs’

claimed damages. See Order (August 29, 2019) [ECF No. 41]. After receiving the special master’s report, see Redacted R. & R. of Special Master (“Special Master Report”) [ECF No. 47], the Court considered plaintiffs’ motion for a default judgment for a second time in February 2020. The Court concluded that although plaintiffs lacked a federal cause of action under § 1605A(c) of FSIA, they could “rely on ‘applicable state and/or foreign law’” to assert their claims against Iran. Maalouf, 2020 WL 805726, at *6 (quoting Doe, 808 F. Supp. 2d at 20). Thus, rather than deny plaintiffs’ motion, the Court allowed plaintiffs to amend their complaint to specify “a particular cause of action arising out of a specific source of law other than FSIA,” id. (quoting Dammarell v. Islamic Republic of Iran, Civ. A. No. 01-2244 (JDB), 2005 WL 756090, at *2 (D.D.C. Mar. 29, 2005)).2 Plaintiffs subsequently amended their complaint three times, most recently filing a fourth amended complaint on June 16, 2020. The fourth amended complaint asserts claims against Iran and MOIS under § 1605A(c) for causing Edward’s death, and under both § 1605A(c) and D.C. law for loss of solatium and intentional infliction of emotional distress. See Fourth Am. Compl. ¶¶ 32–35, 42. Plaintiffs’ motion for a default judgment against Iran is once again before this Court and ripe for consideration.

Legal Standard

FSIA provides “the sole basis for obtaining jurisdiction over a foreign state in our courts.”

Argentine Republic v. Amerada Hess Shipping Corp., 488 U.S. 428, 434 (1989). While foreign states are generally immune from the jurisdiction of U.S. courts, see Saudi Arabia v. Nelson, 507 U.S. 349, 355 (1993); see also 28 U.S.C. § 1604, FSIA provides for federal court jurisdiction over

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